I think it’s the opposite. Bitcoin dropped because the stock market dropped last week due to the higher than expected CPI and PPI prints. Means that inflation is still here and traders are pricing in higher yields which was showed after the bond sell off.
I don’t think they will hike in March. If they did a cut then it would be bullish for stocks and crypto.
Jerome Powell won't hike, but he also won't cut rates. Rates will be maintained and it will be a continuation of the "higher for longer" narrative.
However there is expectations that the fed might start rate cuts in June, and about 3 in total this year, towards the end of the year.
The Federal Reserve is not in control, inflation is. The decision for rate cuts will depend on if actual inflation has truly gone down, OR if the unemployment rate surges uncontrollably.